My employer pays my insurance premiums for me. Is the income from disability benefits still considered taxable income?

Even if your employer gets a tax deduction for disability insurance premiums you are still liable for taxes on disability benefit income?

Any benefits paid to you for either a short-term disability or long-term disability is considered taxable income. If your employer offered you disability insurance at no to you as an employee benefit, your employer can deduct the cost of any disability insurance premiums paid on your behalf.

Under this condition, even if your employer deducts the cost of paying your premiums as a business expense, you are still solely responsible for paying any income tax due on the amount of benefits you actually received. However, if you paid the premiums yourself, you may be able to deduct the cost of premiums.

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Los Angeles ERISA Disability Insurance Bad Faith Attorneys

Most group disability insurance policies obtained through employment are governed by the Employees Retirement Income Security Act of 1974 (ERISA).

ERISA is a federal statute that provides strict deadlines and guidelines for claimants and insurance companies in processing a claim, the submission of an appeal and ultimately the determination of eligibility for benefits under a disability insurance policy.

Even if state laws touch on employee benefit plans, ERISA preempts these laws and provides the exclusive remedy to obtain relief from insurance providers for employee disability coverage. Unless your employer is a church or a government agency, the insurance plan offered through your employment is probably governed by ERISA.

The attorneys at Donahue & Horrow have many years of experience working on insurance claims. We are available to you even before you file a claim if you have questions about the applications process or how to make a claim. Contact the Los Angeles area offices of Donahue & Horrow for a no cost, informative initial consultation.

We understand that our clients, whether professionals, blue-collar workers or any other workers, depend on disability insurance coverage to pay their bills. We will work hard for our clients to obtain the relief that they need.